Economists had been expecting a rise of 2.5%, so the CPI surprise fueled a move into gold. (Higher inflation increases gold’s value as a safe haven asset.) Asian gold demand has been strengthening in recent months.
Gold futures for August delivery advanced 0.9% to $1,245.90 per ounce on Tuesday, according to CME Group. Gold traded as high as $1,258.70 and as low as $1,232. Gold bullion closed in London at $1,250, according to BullionVault.
Silver futures for August delivery increased 0.5% to $19.13 per ounce. Tuesday’s high for silver was $19.44 while the low was $19.06.
Gold and silver funds rose in Tuesday trading.
- The SPDR Gold Trust (GLD) gained 0.9%.
- The iShares Gold Trust (IAU) added 0.8%.
- The iShares Silver Trust (SLV) also increased 0.8%.
Gold and silver mining ETFs improved during the day.
- The Market Vectors Gold Miners ETF (GDX) climbed 1.4%.
- The Market Vectors Junior Gold Miners ETF (GDXJ) advanced 2.7%.
- The Global X Silver Miners ETF (SIL) rose 1.9%.
Gold mining shares were mixed on Tuesday.
- Agnico-Eagle Mines (AEM) dipped 0.8%.
- Barrick Gold (ABX) gained 0.9%.
- Eldorado Gold (EGO) rose 2.7%.
- Goldcorp (GG) climbed 2.5%.
- Kinross Gold (KGC) slipped 0.4%.
- Newmont Mining (NEM) edged up 0.2%.
- NovaGold Resources (NG) fell 0.5%.
- Yamana Gold (AUY) dropped 0.2%.
Silver mining shares were mostly higher during the day.
- Coeur d’Alene Mines (CDE) sank 0.6%.
- Hecla Mining (HL) rose 0.4%.
- Pan American Silver (PAAS) surged 3.5%.
- Silver Wheaton (SLW) climbed 2.7%.
- Silver Standard Resources (SSRI) also gained 2.7%.
As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.